Dow futures tumble after US-China trade talks waver
US futures fell on Thursday morning after President Donald Trump blamed china for breaking the deal, leaving investors concerned that the trade war will continue leaving new tariffs to take effect at midnight.
Dow futures fell by more than 180 points on Thursday morning, after US President Donald Trump said that China ‘broke the deal’ at a rally on Wednesday night, leaving investors worried that new tariffs will come into effect before a trade agreement between the two countries is reached.
US stock futures fell following the news, with the Dow Jones Industrial Average, S&P 500 and Nasdaq all expected to open lower on Thursday. So far this week, the Dow has fallen more than 540 points and the S&P 500 has lost more than 2% of its value US-China trade tensions worsen.
Trump threatens more tariffs on China
At a rally in Florida on Wednesday evening, Trump reiterated he would raise tariffs on even more Chinese goods and even blamed the country’s officials for a break down in the trade negotiations.
‘By the way, you see the tariffs we're doing? Because they broke the deal. They broke the deal,’ Trump said. ‘So they're flying in, the vice premier tomorrow is flying in — good man — but they broke the deal. They can't do that, so they'll be paying.’
China ready to retaliate
In response to Trump’s tough talk, Chinese officials said that they would retaliate in kind if the US opted to impose higher tariffs on their exports.
However, the Chinese delegation is will remain in Washington for the remainder of the week offering a glimmer of hope that a trade agreement will be reached and bring an end to the US-China trade dispute.
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